Iran to work on nuclear-powered boats after U.S. ‘violation’ of deal

Iranian President

By Bozorgmehr Sharafedin

BEIRUT (Reuters) – Iran’s President Hassan Rouhani ordered scientists on Tuesday to start developing systems for nuclear-powered boats, in reaction to what he called the United States’ violation of a global atomic deal.

The announcement marked Iran’s first concrete response to a U.S. Congress decision last month to extend legislation making it easier for Washington to reimpose sanctions on Tehran.

Rouhani described the technology as a “nuclear propeller to be used in marine transportation,” but did not say whether that meant just ships or possibly also submarines. Iran said in 2012 that it was working on its first nuclear-powered sub. http://reut.rs/2gVr80g

His words will stoke tensions with Washington, already heightened by comments from U.S. president elect Donald Trump who has vowed to scrap the deal, under which Iran agreed to curb its nuclear activities in exchange for lifted sanctions.

There was no immediate reaction from the Vienna-based International Atomic Energy Agency, which monitors Iran’s nuclear work.

“The United States has not fully delivered its commitments in the Joint Comprehensive Plan of Action (the nuclear deal),” Rouhani wrote in a letter published by state news agency IRNA.

“With regards to recent (U.S. congress) legislation to extend the Iran Sanctions Act, I order the Atomic Energy Organization of Iran to … plan the design and construction of a nuclear propeller to be used in marine transportation to be used in marine transportation.”

U.S. Congress members have said the extension of the bill does not violate the nuclear deal agreed last year to assuage Western fears that Iran is working to develop a nuclear bomb. The act, Congress added, only gave Washington the power to reimpose sanctions on Iran if it violated the pact.

Washington says it has lifted all the sanctions it needs to under the deal between major powers and Iran.

But Iran’s Supreme Leader, Ayatollah Ali Khamenei said last month that the extension was a definite breach and Iran would “definitely react to it”.

Iran always argued its nuclear program was for peaceful purposes.

(Reporting by Bozorgmehr Sharafedin; Additional reporting by Shadia Nasralla in Vienna; editing by John Stonestreet and Andrew Heavens)

McConnell will not give timeline for Obamacare replacement

U.S. Senate Majority Leader Mitch McConnell (R-KY) participates in a ceremony to unveil a portrait honoring retiring Senate Minority Leader Harry Reid (D-NV) on Capitol Hill in Washington, U.S.

By Patricia Zengerle

WASHINGTON (Reuters) – U.S. Senate Majority Leader Mitch McConnell said on Monday the Senate will move to repeal President Barack Obama’s healthcare law shortly after Jan. 1, but declined to give a timeline for a plan to replace it.

McConnell said the Senate would vote as soon as it returns from its year-end recess to repeal Obamacare. “And then we will work expeditiously to come up with a better program than current law, because current law is simply unacceptable and not sustainable,” he said.

Asked repeatedly, McConnell did not give any timeline for when the Republicans would offer their own plan. He said they would be consulting with different “stakeholders.”

Donald Trump’s election as U.S. president last month means Republicans will control the White House, Senate and House of Representatives in 2017. The new Congress goes to work on Jan. 3; Trump will be sworn in on Jan. 20.

Republicans in both the Senate and House of Representatives say they want to repeal Obamacare early in 2017.

But Republicans have not agreed on how quickly the Obamacare repeal should go into effect. A delay would give them time to work on a replacement, instead of throwing millions of Americans out of their health insurance with no substitute.

(Reporting by Patricia Zengerle; Editing by Chizu Nomiyama and Matthew Lewis)

U.S. Congress passes $618.7 billion annual defense bill

A U.S. Navy crewman directs an F/A-18E Super Hornet fighter jet on the flight deck of the aircraft carrier USS Harry S. Truman in the Mediterranean Sea in a photo released by the US Navy June 3, 2016. U U.S. Navy/Mass Communication Specialist 3rd Class

By Patricia Zengerle

WASHINGTON (Reuters) – The U.S. Senate overwhelmingly passed a compromise version of an annual defense policy bill on Thursday without controversial provisions such as requiring women to register for the draft or allowing contractors to make religion-based hiring decisions.

Ninety-two senators backed the $618.7 billion National Defense Authorization Act, or NDAA, and seven opposed it. Because it passed the House of Representatives by a similarly large margin last week, the bill now goes to the White House for President Barack Obama to veto or sign into law.

A White House spokesman told a briefing he did not yet have a position on the bill to report.

The 2016 bill, the last of Obama’s presidency, includes some Republican-backed initiatives with which he has disagreed in the past. It includes a $3.2 billion increase in military spending, when there has been no similar increase in non-defense funding.

The bill also bars closures of military bases, although top Pentagon officials say they have too much capacity, and it blocks planned reductions in active-duty troop numbers.

And it continues policies that bar transfers of prisoners to U.S. soil from the detention center at Guantanamo Bay, Cuba, which Obama had hoped to close. While his administration has shipped most inmates from the controversial prison, the Democrat is not expected to accomplish his goal of shuttering it before he leaves office Jan. 20.

Obama’s successor, Republican Donald Trump, wants to keep Guantanamo open, and expand it.

The NDAA passed both chambers in the Republican-led Congress with margins large enough to overcome a veto, and the compromise legislation features many provisions such as a military pay raise and an expansion of a landmark human rights bill, that are extremely popular in Congress. [L1N1E316A]

After months of negotiation, the Senate and House Armed Services committees unveiled a compromise version of the NDAA last month that left out the Russell Amendment, a “religious freedom” measure Democrats said would have let federal contractors discriminate against workers on the basis of gender or sexual orientation, overturning Obama’s executive order.

Some House Republicans said they hoped to revisit that provision after Trump takes office, when they do not have to worry about a veto threat from a Democratic White House.

The bill also excluded a provision that would have required women to register for the military draft, now that Pentagon leaders are moving to allow them into combat.

A provision recommending that the U.S. conducts yearly high-level military exchanges with Taiwan, which Beijing sees as a breakaway province, made it into the final bill.

China’s defense ministry said in a statement on its official microblog on Friday that it was “firmly opposed” to the move, which would “inevitably damage U.S. interests”.

(Reporting by Patricia Zengerle; Additional reporting by Timothy Gardner, and Christian Shepherd and Michael Martina in BEIJING; Editing by Richard Chang and Clarence Fernandez)

Some Republicans see attacking Obamacare through regulation

Obama signs Affordable Care Act AKA Obamacare

By Susan Cornwell

WASHINGTON (Reuters) – Congressional Republicans are looking for the quickest ways to tear down Obamacare following Donald Trump’s election as U.S. president, including rapidly confirming a new health secretary who could recast regulations while waiting for lawmakers to pass sweeping repeal legislation.

Trump’s victory on Tuesday means Republicans will control the White House, Senate and House of Representatives. But congressional Democrats are expected to put up a huge fight against Republican efforts to repeal the 2010 law considered President Barack Obama’s signature domestic policy achievement.

The Affordable Care Act, dubbed Obamacare, has provided 25 million previously uninsured Americans with health coverage. Republicans have launched repeated legal and legislative efforts to dismantle the law, which they call a government overreach.

Wyoming Senator John Barrasso, a member of Senate Republican leadership, said one way for the incoming president and Congress to attack Obamacare immediately after Trump takes office on Jan. 20 would be to quickly confirm a new secretary of Health and Human Services, the official who writes the rules and regulations that enforce the law.

“We could confirm someone on Jan. 20 who could come in immediately and could be working right now on rewriting rules and regulations to give more freedom and choice to the states, to insurance companies and to businesses that are trying to provide affordable care to their workers,” Barrasso said in a telephone interview.

Barrasso noted that the Senate needs only a simple majority vote in the 100-seat chamber to confirm Cabinet members, as opposed to 60 votes to overcome procedural hurdles the Democrats could present to repeal legislation.

Passing repeal legislation “is not a ‘Day One’ activity. But a new secretary of HHS going after the regulations can be a ‘Day One’ activity,” Barrasso added.

Trump during the campaign called Obamacare “a disaster” and joined fellow Republicans in vowing to repeal and replace it with proposals like tax-free health savings accounts. His transition website says Trump wants a solution that “returns the historic role in regulating health insurance to the states.”

In repealing Obamacare, congressional Republican may have to resort to a special procedure known as reconciliation to get around Democrats in the Senate, where rules protect the rights of the minority party.

Republicans in Congress used reconciliation to try to undo large chunks of Obamacare in January, but Obama vetoed the legislation. The bill would have wiped out tax subsidies provided to help people afford insurance coverage, as well as tax penalties on people who do not obtain insurance as required by the law, and would have eliminated expansion of the Medicaid insurance health insurance program.

Republican Representative Chris Collins of New York, one of Trump’s earliest supporters on Capitol Hill, said he hopes Congress can pass a similar bill gutting Obamacare within Trump’s first 100 days in office, a promise Trump made during the presidential campaign. But some changes will doubtless be phased in over time, Collins said.

“There’s nothing that we will be able to do or would want to do that would impact anyone’s health insurance plan for 2017,” Collins said in an interview.

“From a replacement standpoint, our position has always been as Republicans to move forward in a step-by-step fashion,” Barrasso said.

In an interview with the Wall Street Journal published on Friday, Trump said he was considering retaining parts of Obamacare including provisions letting parents keep adult children up to age 26 on their insurance policies and barring insurers from denying coverage to people with pre-existing medical conditions.

MORE FLEXIBILITY

While waiting for Congress to act on legislation, the new HHS secretary could be reworking Obamacare regulations, Barrasso said. For example, regulations could give U.S. states more flexibility under a provision that lets states seek waivers from key provisions of the law, such as exemptions from the so-called individual mandate requiring Americans to obtain insurance and the employer mandate to provide it.

Kim Monk, an analyst at Capital Alpha Partners, which provides policy research to financial institutions, said Trump’s HHS might be able to tighten up the rules governing special enrollment periods for Obamacare. Insurers complain that these periods have allowed some people who initially skipped buying insurance to sign up after becoming ill.

HHS might also be able to alter the language on “essential benefits” that the law requires insurance plans to cover, which include trips to the emergency room, maternity and newborn care, and mental health services, Monk said.

“The law requires they have to cover 10 essential health benefit categories, but how that gets defined, a lot of that is interpretative,” Monk said. “And of course, everything the Obama administration interpreted was more, more, more, more expensive coverage, and all these things lead to premium increases.”

Collins, a member of the Trump transition team’s executive committee, said the job of HHS secretary or surgeon general “would be great for Ben Carson,” referring to the neurosurgeon who ran unsuccessfully for the Republican presidential nomination and later endorsed Trump.

(Reporting by Susan Cornwell; Editing by Will Dunham)

U.S. health officials outline Zika spending priorities

County vector sprays neighborhood for mosquitos with Zika

WASHINGTON (Reuters) – U.S. health officials outlined on Tuesday how they planned to divide up $1.1 billion in funds approved by Congress to fight the Zika virus, including repaying $44.25 million they were forced to borrow from a fund allocated for other emergencies.

The funds were borrowed from the Public Health Emergency Preparedness cooperative, which helps state and local public health departments develop response plans to emergencies, while Congress battled over whether to supply the funds.

President Barack Obama in February requested $1.9 billion in emergency Zika funding. Congress approved $1.1 billion in September after months of political bickering.

On a conference call with reporters, health officials said$394 million would go to the U.S. Centers for Disease Control and Prevention, $152 million to the National Institutes of Health and $387 million for the Public Health and Social Services Emergency Fund, which supports the nation’s ability to respond to public health emergencies.

A further $40 million is aimed at expanding primary healthcare services in Puerto Rico and other U.S. territories, and $20 million for projects of national and regional significance in those areas.

Puerto Rico has been particularly hard hit by Zika, a mosquito-borne virus that has been linked with a rare birth defect known as microcephaly. The virus has spread to almost 60 countries and territories since the current outbreak was identified last year in Brazil.

As of Oct. 12, more than 29,000 cases of Zika infection had been reported in the United States and territories. Of those, more than 2,600 cases are in pregnant women. Nearly 26,000 of those cases are in Puerto Rico and other U.S. territories.

The government will be allocating funds, based on a competitive process, to support Zika virus surveillance and other programs. The funds will also be used to expand mosquito control, continue vaccine development and begin studies on the effect of Zika on babies born to infected mothers.

(Reporting by Toni Clarke in Washington; Editing by Peter Cooney)

Dozens of U.S. lawmakers request briefing on Yahoo email scanning

Yahoo Mail logo

By Dustin Volz

WASHINGTON (Reuters) – A bipartisan group of 48 lawmakers in the U.S. House of Representatives on Friday asked the Obama administration to brief Congress “as soon as possible” about a 2015 Yahoo <YHOO.O> program to scan all of its users’ incoming email at the behest of the government.

The request comes amid scrutiny by privacy advocates and civil liberties groups about the legal authority and technical nature of the surveillance program, first revealed by Reuters last week. Custom software was installed to search messages to hundreds of millions of accounts under an order issued by the secretive Foreign Intelligence Surveillance Court.

“As legislators, it is our responsibility to have accurate information about the intelligence activities conducted by the federal government,” according to the letter, organized by Republican Representative Justin Amash of Michigan and Democratic Representative Ted Lieu of California.

“Accordingly, we request information and a briefing as soon as possible for all members of Congress to resolve the issues raised by these reports.”

Investigators searched for messages that contained a single piece of digital content linked to a foreign state sponsor of terrorism, sources have told Reuters, though the nature of the content remains unclear.

Intelligence officials said Yahoo modified existing systems used to stop child pornography and filter spam messages on its email service.

But three former Yahoo employees told Reuters the court-ordered search was done by a module buried deep near the core of the company’s email server operation system, far below where mail sorting was handled.

The Senate and House intelligence committees were given a copy of the order when it was issued last year, sources said, but other members of Congress have express concern at the scope of the email scanning.

Some legal experts have questioned the breadth of the court order and whether it runs afoul of the U.S. Constitution’s Fourth Amendment protections against unreasonable searches.

Half of registered U.S. voters believe the Yahoo program violated the privacy of customers, according to a poll of 1,989 people conducted last week by Morning Consult, a polling and media company.

Twenty-five percent were supportive of the program because of its potential to stop criminal acts, the survey found, while another quarter did not know or had no opinion.

The congressional letter is addressed to Attorney General Loretta Lynch and Director of National Intelligence James Clapper.

(Additional reporting by Mark Hosenball and Joseph Menn; Editing by Jeffrey Benkoe)

Senators accuse Yahoo of ‘unacceptable’ delay in hack discovery

Yahoo CEO Marissa Mayer delivers her keynote address at the annual Consumer Electronics Show (CES) in Las Vegas, Nevada

By Dustin Volz

WASHINGTON (Reuters) – Six Democratic U.S. senators on Tuesday said it was “unacceptable” that Yahoo only last week announced a 2014 hack into 500 million user accounts and asked embattled CEO Marissa Mayer for more information about the company’s investigation into the data breach.

The lawmakers said they were “disturbed” the two-year-old intrusion was detected so long after the hack occurred.

“That means millions of Americans’ data may have been compromised for two years,” the senators wrote in a joint letter addressed to Mayer. “This is unacceptable.”

Yahoo did not immediately respond to a request for comment about the letter.

Yahoo has faced mounting questions about exactly when it knew about the 2014 cyber attack that exposed the email credentials of users, a critical issue for the company as it seeks to prevent the breach from affecting a pending takeover of its core business by Verizon Inc.

The internet firm has said it detected the breach this summer after conducting a security review prompted by an unrelated hack claim that turned out to be meritless. Yahoo has not given a precise timeline explaining when it was made aware of the 2014 attack, or if it knew of the breach before announcing the deal with Verizon in late July.

The senators requested a briefing from Yahoo to explain the company’s investigation into the breach, its cooperation with law enforcement and national security authorities, and plans to protect affected users.

The letter was signed by Senators Patrick Leahy, Al Franken, Elizabeth Warren, Richard Blumenthal, Ron Wyden and Edward Markey.

The senators asked Mayer for a timeline of the hack and its discovery and how such a large breach went undetected for so long. They also asked what Yahoo was doing to prevent another breach in the future, if the company has changed its security protocols, and whether the U.S. government had warned of a possible hacking attempt.

The letter came a day after Democratic Senator Mark Warner asked the U.S. Securities and Exchange Commission to investigate whether Yahoo and its senior executives fulfilled obligations to inform investors and the public about the hacking attack, which Yahoo has blamed on a “state-sponsored actor.”

(Reporting by Dustin Volz; Editing by Chizu Nomiyama and Andrew Hay)

Congress to receive 28 classified pages of 9/11 report today

House Minority Leader Nancy Pelosi (D-CA) speaks during a media briefing on Capitol Hill in Washington, U.S., July 7, 2016.

WASHINGTON (Reuters) – The U.S. Congress on Friday will receive 28 classified pages of the official report on the Sept. 11 attacks on the United States, House of Representatives Democratic leader Nancy Pelosi said.

“The documents are coming to Congress today,” she said at her weekly news conference, adding that she was not sure when the material would be made public.

Some U.S. lawmakers have alleged the 28 pages link Saudi government officials to the 2001 attacks. CIA chief John Brennan said in June that people should not take them as evidence of Saudi complicity.

The still-classified section of the report on the attacks, informally the 9/11 Commission Report, is central to a dispute over whether Americans should be able to sue the Saudi Arabian government for damages. The Office of the U.S. Director of National Intelligence has been reviewing the material to see whether it could be declassified.

Legislation allowing such lawsuits has been making its way through Congress. President Barack Obama has said he will not sign any such measure. His administration says the legislation could pose a national security threat to the country and is opposed by important U.S. allies.

(Reporting by David Morgan and Patricia Zengerle; Writing by Mohammad Zargham and Patricia Zengerle; Editing by Steve Orlofsky)

Science group warns of shortcomings in U.S. missile defense

Intercept flight test of a land-based Aegis Ballistic Missile in Kauai, Hawaii

By David Alexander

WASHINGTON (Reuters) – The U.S. missile defense system to counter attacks from rogue states like North Korea has no proven capability to protect the United States and is not on a credible path to achieve that goal, a science advocacy group said on Thursday.

The ground-based midcourse missile defense system, which has deployed 30 interceptors in Alaska and California, has been tested under highly scripted conditions only nine times since being deployed in 2004, and failed to destroy its target two-thirds of the time, the Union of Concerned Scientists said in a report.

“After nearly 15 years of effort to build the GMD homeland missile defense system, it still has no demonstrated real-world capability to defend the United States,” said Laura Grego, a UCS physicist who co-authored the report.

Deficiencies in the program, which has cost $40 billion so far and is being expanded to include 44 interceptors by 2017, are due largely to a Bush administration decision to exempt the system from normal oversight and accountability, to rush it into service by 2004, Grego said in an interview.

“Instead of getting something out to the field that worked well or worked adequately, in fact this has been a disaster. It’s done the opposite,” she said.

The Obama administration’s efforts to improve oversight while keeping the system outside the normal development and procurement process have contributed to the problems, she said.

“The lack of accountability has had and will have real lasting effects, especially for a system … that’s strategically important. It should be held to the highest standards, the highest rigor,” she added.

The Missile Defense Agency said in a statement the rapid deployment requirement in the law that created the system was “a driving factor” in the delivery of a ground-based interceptor with “reliability challenges.”

The agency said the problems had led to changes in the interceptor’s design and a program to improve reliability, including use of more mature technologies. The MDA said it was seeking ways to reduce the risks of deploying equipment still under development.

The UCS report echoed criticisms the homeland missile defense system has faced from other quarters. A Pentagon assessment in 2015 found that flight testing of the system was still “insufficient to demonstrate that an operationally useful defense capability exists.”

A February report by Congress’s Government Accountability Office said the MDA was taking a “high-risk” approach by buying interceptors still under development for operational use.

(Reporting by David Alexander; Editing by David Gregorio)

U.S. Congress shrugs off guns, Zika as summer break nears

House Majority Leader

By Richard Cowan and David Morgan

WASHINGTON (Reuters) – The U.S. Congress is headed for a seven-week recess without addressing gun violence, the Zika virus outbreak and other pressing issues, amid persistent election-year bickering.

Despite recent gun violence, the House of Representatives will not vote this week on a proposal to keep firearms out of the hands of people on terrorism watch lists, that chamber’s Republican leader Kevin McCarthy told reporters on Tuesday.

Similarly, President Barack Obama’s request for $1.9 billion in funds to combat the Zika virus and the birth defects it can cause has been stalled in Congress since February.

Republicans and Democrats were also at odds over spending bills that would keep the government functioning beyond Sept. 30, when current fiscal year funding expires.

When Republicans took over control of Congress, they vowed to get things done, but have had difficulty doing so during this election year, failing to pass a budget or even consider Obama’s nomination of Merrick Garland to fill a Supreme Court vacancy.

It did, however, approve bipartisan legislation helping Puerto Rico climb out of a crippling debt crisis and is trying to make progress on legislation aimed at improving police relations with local communities in the aftermath of gun violence.

With only four days left before the start of an unusually long recess, a failure to vote on guns this week would postpone any possible action by the House on the issue until Sept. 6 at the earliest. That is when lawmakers will return from break.

After that, lawmakers will be working only for short stints ahead of the Nov. 8 presidential and congressional elections.

A June 12 mass shooting in Orlando and gun violence in Dallas and other cities has again propelled gun control to prominence, but the National Rifle Association and its allies in Congress so far have staved off even bipartisan legislation.

Gun control is generally opposed by Republicans and supported by Democrats. Some Republicans have talked about a gun bill possibly moving through Congress in the fall, in the midst of the campaign season, but Democrats were skeptical.

“This Congress will do nothing on curbing gun violence,” Representative Xavier Becerra of California, a member of the House Democratic leadership, told reporters.

There is even disagreement about whether House Speaker Paul Ryan and House Democratic leader Nancy Pelosi talked about a Democratic proposal to establish a special committee on gun violence. Democrats say Pelosi raised the issue with Ryan after the Dallas shootings. Ryan’s office says he has never discussed the topic with anyone.

Republicans in the House and Senate have signed off on a $1.1 billion Zika funding bill, but Democrats are balking over what they see as “poison pills” attached to the money that would deny funds to women’s healthcare provider Planned Parenthood and ease some environmental provisions.

House Speaker Paul Ryan meanwhile showcased his “A Better Way” agenda, flashing a glossy pamphlet at a press conference listing a set of proposals designed to lure votes in November’s elections but do nothing this year legislatively.

Republicans have also pushed for new federal probes of Hillary Clinton, the presumptive Democratic presidential nominee, on her use of private emails while secretary of state.

(Reporting by Richard Cowan, David Morgan and Kouichi Shirayanagi; Writing by Mohammad Zargham; Editing by Kevin Drawbaugh and James Dalgleish)